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Salesforce's Debt Soars as Buyback Shrinks Shares
24 Sep
Summary
- Salesforce's share count fell by 15% due to a $25 billion accelerated buyback.
- Total debt increased from $11.81 billion to $42.38 billion in one year.
- The company may sell its Anthropic stake to repay a portion of its debt.
Salesforce has significantly reduced its outstanding shares through a $25 billion accelerated share repurchase program. This initiative, the company's largest ever, has led to a notable decrease in its diluted share count, falling from 962 million in the quarter ending July 2025 to 821 million in the quarter ending July 2026.
The substantial buyback was financed by a considerable increase in corporate debt. Salesforce's total debt surged from $11.81 billion in July 2025 to $42.38 billion by July 2026. This sharp rise in liabilities has impacted the company's financial projections.
Consequently, Salesforce has revised its fiscal 2027 free cash flow growth outlook downwards, now anticipating a 4% to 5% increase, a significant reduction from the previous 9% to 10% projection. This adjustment is attributed to the financial drag from the new debt.
In response to its increased debt burden, Salesforce is reportedly considering selling its stake in Anthropic. This investment, initially acquired for hundreds of millions, is now valued in the tens of billions and could be used to partially repay the debt incurred for the share buyback.
